Hedge Fund T2 Splits; Tilson Sells, Repurchases Berkshire Stake

Well-known hedge fund T2 Partners liquidated most of its stock positions last month as the two managers parted ways, according to a letter to investors.

Bloomberg News

Whitney Tilson

Tilson will become the sole manager of T2 Partners while Tongue is moving on to start his own investment firm Deerhaven Capital Management, the letter says.

“After careful consideration, we have decided to cease managing money together and will instead do so independently,” the two wrote. “The friendship and admiration we have for each other is unchanged.”

Tilson wrote the positions were liquidated in order to ensure the fund had enough cash should investors have wanted to pull out. He said he felt it was “only fair” that investors have a chance to withdraw with the change in management. The letter, dated June 22, allowed investors to withdraw funds up to the end of June.